From June 1st, six auto insurance reform pilot areas in Heilongjiang, Shandong, Guangxi, Chongqing, Shaanxi and Qingdao will officially use the new auto insurance clause.
Yesterday, Liu Feng, director of the Insurance and Insurance Department of the China Insurance Regulatory Commission, said that the commercial auto insurance rate will establish a sound market-based clause rate formation mechanism. There are three main contents: one is to adjust the calculation formula of commercial auto insurance rate; the second is to simplify the adjustment factor of commercial auto insurance rate; the third is to expand the range of non-compensation preferential treatment coefficient, the range is from 0.7-1.3 to 0.6-2.0 To make the auto insurance rate and risk match more. The space given to the company by this reform is very large. At the lowest level, the auto insurance premium can be discounted by 40%. The current auto insurance can only be reduced to 30%. Will such a low discount lead to a "price war"? Liu Feng believes that the overall “suicide pricing” in the industry after the reform is unlikely.

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